Low-value parcels shipped from China to the U.S. are now subject to a 54% tariff after a trade agreement was reached.

The de minimis exemption allowed items valued at up to $800 and sent from China via postal service to previously enter the United States duty free and with minimal inspections

On May 2, the administration of U.S. President Donald Trump ended the de minimis policy allowing packages worth less than $800 ordered online from China and Hong Kong to enter the United States duty free. It imposed tariffs of 120 percent on such parcels.

Cheaper goods from China are no longer exempt from import duties, which could sharply raise prices for consumers.

An agreement between the United States and China to temporarily slash tariffs stopped short of reinstating the U.S. "de minimis" duty exemption for ecommerce packages from China, but still gives online retailers like Shein and Temu a window to adapt their businesses.

The US and China will reduce tariffs by 115% for at least the next three months after President Trump escalated the fight to impose 145% tariffs on Chinese imports.

A temporary U.S.-China tariff reduction allows online retailers like Shein and Temu to adapt their business strategies. The 90-day reprieve helps these companies restock U.S. warehouses at a reduced cost.

Small packages from China are still subject to tariffs of 120%, a White House official confirmed Monday — a major blow for U.S. consumers seeking cheap goods from e-commerce retailers like Shein and Temu.